Facebook Dumps Basic VR Headset in Favor of Deluxe Models

Facebook's $199 Oculus Go is on its way out in favor of the $399 Oculus Quest and Oculus Rift.
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Facebook  (FB) - Get Report shares rose Tuesday, as the social media titan said it’s dumping its entry-level virtual-reality headset in favor of deluxe offerings costing twice as much.

Two years ago Facebook launched Oculus Go with a starting price of $199. It’s an all-in-one VR headset that functions without being linked to a computer or smartphone for its computing power.

But a year later, the Menlo Park, Calif., company introduced the Quest for $399. It’s a more potent all-in-one headset. And then came the Rift, also costing $399, which has to be connected to a computer.

“Just past the one-year anniversary of Quest, we’re humbled by its continued success,” Facebook said in a blog statement.

“The community response has been overwhelmingly positive, and you’ve told us loud and clear that 6DOF [six degrees of freedom] feels like the future of VR.”

As a result, “we’re going all-in, and we won’t be shipping any more 3DOF VR products,” Facebook said. “We’ll end sales of Oculus Go headsets this year as we double down on improving our offerings for Quest and Rift.”

In its latest quarter, Facebook registered $297 million in revenue from its non-advertising businesses, including Oculus, up 80% from a year earlier, CNBC reports.

Morningstar analyst Ali Mogharabi issued a mixed review for Facebook after its first-quarter earnings. “We still expect a decline in total revenue for the full year,” he wrote in an April 29 report. “However, we were pleased with [first-quarter] growth in user count and engagement.”

Facebook shares at last check were off 0.3% at $241.61. They closed the regular session on Tuesday up 1.3% at $242.24. They have soared 61% in the past three months.